Capital funds liquidation

High Lucidus Capital Partners, which liquidate the portfolio for 900 mln. USD and plans to return money to investors next month, too, "came the news." Top funds such as the Black Rock, Third Avenue, Vanguard, the mutual funds invested in sporadically traded issues - not necessarily regarded as risky, but without a clear market price and high so only models (mark to model), ie less liquid positions ...All face similar challenges.

The situation resembles what happened to the funds in the money markets in 2007. Who were in absolutely identical situation - with pressure razkeshvane investors in them and drop the price of their assets.

A failure of these financial intermediaries from subsequent purchases hit companies that were financed with short-term resource them. Which companies? Lehman Brothers, for example, which collapsed precisely because he could not "refinance" their short-term obligations in the money markets.Rising interest the Fed

Only the expectation of rise has led to escalating in the last year of selling high-yield / high-risk debt securities. Liquidity dries up this segment.

Hopefully today history is not repeated as farce.

After 2001, and "dotcom" thunders the Fed slashed interest rates from 6.5% to 1%, inflating the housing bubble, as 2004 began to raise it several times until 2006 when it is already at the level of 5.25 %.

The effect: full debt in its capital structure players - households, financial companies, institutional investors - especially high risk are under water.

Then, the initial thesis was that the auctions concern only "subprime" market (subprime) - and that damages are limited and controlled. So hard today.

It is clear that Pangar are not the only players in the energy sector and its eco-system - industrial metals such as steel, zinc, etc. Interconnection is such that "the sea is deep and water for all."